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We develop a new methodology to estimate the elasticity of urban costs with respect to city population using French land price data. Our preferred estimate, which handles a number of estimation concerns, stands at 0.041. Our approach also yields a number of intermediate outputs of independent...
Persistent link: https://www.econbiz.de/10010766379
It is widely believed that unaffordable housing could drive businesses away and thus impede job growth. However, there is little evidence to support this view. This paper presents a simple model to clarify how housing affordability is linked to employment growth and why unaffordable housing...
Persistent link: https://www.econbiz.de/10010884184
newer literature on agglomeration economies. …
Persistent link: https://www.econbiz.de/10005233845
We analyze the role of optimal income taxation across different local labor markets. Should labor in large cities be taxed differently than in small cities? We find that a planner who needs to raise revenue and is constrained by free mobility of labor across cities does not choose equal taxes...
Persistent link: https://www.econbiz.de/10011165592
effects on home and job location, on land use, and on agglomeration benefits are hard to pin down. We develop a spatial …
Persistent link: https://www.econbiz.de/10010886147
cities toughen competition, allowing only the most productive to survive) and agglomeration economies (larger cities promote … a generalised version of a tractable firm selection model and a standard model of agglomeration. Stronger selection in … larger cities left-truncates the productivity distribution whereas stronger agglomeration right-shifts and dilates the …
Persistent link: https://www.econbiz.de/10011279326
Models of the new economic geography share a number of common conclusions, but also exhibit notable differences, in particular with respect to the shape of the location pattern and the efficiency of the market equilibrium. This reflects the fact that these models rely heavily on specific...
Persistent link: https://www.econbiz.de/10005233783
historically emerged as the core. The agglomeration rent which accrues to the mobile factor gives unions and governments in the …
Persistent link: https://www.econbiz.de/10005703558
The core-periphery model by Krugman (1991) has two 'dramatic' implications: catastrophic agglomeration and locational … and easily reversible transition from symmetry to agglomeration. …
Persistent link: https://www.econbiz.de/10005822499
competition models. The agglomeration rent which accrues to the mobile factor in the core region can be taxed. Moreover, a tax … addition to core-periphery equilibria, exhibits stable equilibria with partial agglomeration. We show that a tax differential … may arise as an equilibrium of the tax game even when there is only partial agglomeration and the mobile factor does not …
Persistent link: https://www.econbiz.de/10005763719